Stepping on the Property Ladder in Flip-Flops: Your Guide to Shared Ownership Mortgages
So, you're tired of sharing a fridge with Steve from flat 2B who thinks broccoli is a breakfast cereal. Rent keeps going up faster than your social media follower count, and buying a whole house seems about as likely as winning the lottery while simultaneously being struck by lightning (not recommended). Fear not, weary renter, for there's a way to shimmy your way onto the property ladder without needing a bank account the size of Scrooge McDuck's vault. Enter the glorious world of Shared Ownership Mortgages!
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| How To Get A Shared Ownership Mortgage |
What is a Shared Ownership Mortgage? (Hold onto your houseplants, this gets exciting)
Imagine a property like a delicious cake. With a shared ownership mortgage, you get to buy yourself a big, juicy slice – typically between 25% and 75% of the whole thing. The rest? Well, that belongs to a housing association, kind of like a benevolent cake-sharing fairy godmother. You pay a mortgage on your slice and rent on the rest. It's like renting and owning had a beautiful, commitment-averse baby.
Why would I even consider such a thing? (Besides cake analogies?)
Here's the beauty of it:
- Lower deposit: You only need a deposit for the share you're buying, making it much more achievable than a whole house deposit (which might require selling your kidney on the black market. Not recommended...seriously).
- Get your foot in the door: Property ownership is a chance to paint your walls the wacky shade of purple you've always dreamed of (within reason, the housing association might have a word about that).
But wait, there's more! As you build equity in your share (which happens as property prices generally go up), you can buy more shares over time. This is called staircasing, and it's basically like slowly but surely eating your way through that entire cake until you own the whole thing.
Tip: Revisit this page tomorrow to reinforce memory.
Alright, I'm intrigued. How do I snag myself one of these magical Shared Ownership Mortgages?
Step 1: Become a Befriender of Affordability Calculators
Not all heroes wear capes; some wear spreadsheets. These online calculators will give you a rough idea of what you can afford based on your income and the deposit you've saved up.
Step 2: Seek Out Your Perfect Housing Association Match
Tip: Absorb, don’t just glance.
There are a variety of housing associations out there, each with their own properties and eligibility criteria. Do some research to find one that operates in your desired area and offers properties that tickle your fancy (metaphorically, of course – extensive renovations might not be allowed).
Step 3: Mortgage Broker – Your New BFF
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Shared ownership mortgages aren't exactly common as muck, so a good mortgage broker can be your knight in shining armor (or should we say, shining credit report?). They'll help you navigate the options, find the best deal, and hold your hand through the whole process (because buying a house can be a tad stressful, even with a slice of cake involved).
QuickTip: Reread tricky spots right away.
Step 4: Prepare Thy Documents
Get ready to unleash your inner filing ninja. You'll need proof of income, bank statements, and anything else that proves you're a financially responsible adult who can handle a mortgage payment (no, that meme collection you have on your phone doesn't count).
Step 5: The Waiting Game (with Snacks)
Tip: Summarize the post in one sentence.
The application process can take a while, so channel your inner zen master and embrace the art of patient waiting. This is the perfect time to stock up on snacks for those inevitable moments of house-hunting hangry rage.
Step 6: Moving Day! (Cue celebratory dance moves)
Congratulations! You've conquered the shared ownership mortgage and secured your very own slice of the property pie. Now go forth and decorate those walls purple (or whatever color your heart desires, within reason).
Remember: Shared ownership mortgages aren't for everyone. There can be restrictions on selling your share and you'll still have to pay rent on the portion you don't own. But for those who are priced out of the traditional property market, it's a fantastic way to get a foothold on the property ladder and finally ditch Steve and his questionable breakfast choices.
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